On May 23, 2014, the Company announced its planned exploration program for its “LH” gold exploration property (the “LH Property”). In connection with the planned exploration program, the Company retained Rick Walker, P.Geo. (Dynamic Exploration Ltd.) to act as its Qualified Person for the LH Property project. Mr. Walker will be supervising the Company’s 2014 exploration program. The first phase of the proposed exploration program included compilation of data on, and immediately adjacent to, the LH Property, including geological mapping, surface and sub-surface geochemical analyses and a detailed review of the diamond drill hole results reported from previous programs. The subsequent field program was designed to evaluate the results arising from interpretation of the compilation of the data, including the 2012 drill program completed by IBC. The field program included geological mapping, ground geophysics (magnetic and induced polarization) and to be followed by a diamond drill program.
On August 26, 2014, the Company reported the initiation of the 2014 field program on its LH gold exploration property. In June, 2014, a survey grid comprising approximately 8.3 line km was prepared for a ground-based IP and Magnetometer survey. Coincident with preparation of the grid, a Self-Potential (“SP”) survey was completed along the existing road network in the Fingland Creek drainage. The last exploration program completed within Fingland Creek was in 1988. As a result, there was some uncertainty with respect to the collar locations for previous drill holes. A GPS survey resulted in identification of many of the drill collars from previous programs, together with determination of their coordinates. In addition, the road network has been reasonably well located for the purposes of the 2014 program. SP survey measurements from a total of 282 stations, spaced approximately 15 metres apart, were acquired while making a GPS survey of the existing road and trail network on the LH Property. These data measurements were intended to identify anomalies, thereby ensuring that the prepared grid was well situated to ensure successful identification of IP and/or magnetic anomalies from the subsequent geophysical survey. Data from the SP survey identified two reasonably sized anomalies, both in terms of areal extent and amplitude of the response. The first anomaly is located on the Baseline immediately south of Line 8N (having minimum dimensions of 30 metres east-west by 50 metres north-south), while the second anomaly is located slightly west of the Baseline and north of Line 6N (approximately 70 metres east-west by 40 metres north-south). Both anomalies remain open and may, therefore, be larger. Initial modeling of the second anomaly suggests that the source lies at a depth of approximately 52 metres. The IP / Magnetometer survey was completed in late July, 2014. In addition, the Company completed an initial water sampling program along Fingland Creek in advance of its proposed diamond drill program. The survey is intended to provide a baseline for water quality after the spring run-off, but prior to drilling. Samples have been collected and are currently being analyzed. The Company submitted a permit application to the Ministry of Energy and Mines (“MEM”) for a diamond drill program, which is expected to commence in September, 2014. The proposed drill program will consist of approximately 1,000 metres of drilling to make an initial test of anomalies identified from the ground geophysical survey.
On September 12, 2014, the Company provided an update for the 2014 field program on its LH gold exploration. In connection with the Self-Potential (“SP”) survey completed in June 2014, the survey identified two conductive anomalies of interest. The first anomaly is located on the Baseline immediately south of Line 8N, with the second anomaly located slightly west of the Baseline and north of Line 6N. Initial modelling of the second anomaly was interpreted to suggest the anomaly is located at a depth of approximately 52 metres below surface. A combined Induced Potential (“IP”) / Magnetometer survey was completed in late July, 2014, comprising approximately 8.3 line km. Results from the magnetometer survey confirm the presence of the two anomalies described above, as being two components of a much larger anomaly. The main portion of this magnetic anomaly lies to the south of Line 6N and southwest of the existing road network. A review of previous results, particularly those from the 2012 drill program, are interpreted to suggest that moderately to strongly anomalous gold values are associated with intervals having strong pyrrhotite mineralization. Pyrrhotite is both magnetic and strongly conductive, therefore, a coincident SP (i.e. conductive) / magnetic anomaly may indicate the presence of elevated pyrrhotite content, potentially with elevated gold values. The magnetic anomaly (described above) is part of a trend of at least 5 similar anomalies, ranging from 35 m in diameter to an elongate anomaly 82 m wide by a minimum of 170 m length, extending approximately 600 m south-southwest x 85 m wide. The first SP anomaly (described above) represents the northernmost portion of this well developed, strongly magnetic string of anomalies. Therefore, the magnetic anomaly, with a coincident SP anomaly at the northernmost extent, represents a high priority drill target, particularly since a large portion of the anomaly identified has not been tested by any previous holes.
On October 9, 2014, the Company commenced its planned drill program on the LH gold exploration property consisting of approximately 800 meters of helicopter-supported drilling to make an initial test of anomalies identified from the recently completed ground geophysical survey. On October 20, 2014, the Company announced that it had completed its helicopter-supported drill program on the LH gold exploration property. As part of its 2014 exploration program, the Company completed 4 drill holes at 2 setup locations for a total of 707 metres of BTW core. The program was initiated to make an initial test of anomalies identified from the recently completed ground geophysical survey (see the Company’s news releases of May 23, 2014, August 26, 2014 and September 12, 2014 for additional details and information regarding the current exploration program for the LH Property project). Drill core samples were submitted to AGAT Laboratories in Burnaby, BC for analysis.
On January 12, 2015, the Company announced assay results from its 2014 helicopter-supported drill program completed on the LH Property. The exploration drill program successfully tested magnetic anomalies identified from a ground geophysical survey completed in June/July 2014. Coincident Self-Potential (“SP”) and Induced Potential (“IP”) anomalies are associated with the magnetic trend. The objective of the drill program was to test for anomalous to elevated gold associated with the prominent magnetic trend, at locations associated with anomalous SP and IP responses. The first pad, from which drill holes LH14-26 and 27 were drilled, is located at the southern end of a linear trend of magnetic anomalies, coincident with both SP and IP anomalies identified previously. The pad is located on the western margin of the magnetic trend, with the two holes drilled to the east-southeast and east, respectively. The second pad is located approximately 280 m southeast and 80 m higher than pad 1, on the southeast margin of the magnetic trend. Drill holes LH14-28 and 29 were drilled to the west and northwest, respectively. For analytical results on the 2014 drill holes and additional information and details regarding the 2014 exploration drill program, see the Company’s news release dated January 12, 2015. The objective of the 2014 drill program was to test the interpretation of an association between magnetic anomalies and the presence of pyrrhotite and, more importantly, associated gold. The program is considered to have been successful, with approximately 37.6% of the core returning gold values in excess of 0.1 gm/tonne and a further 5.5% returned gold values in excess of 0.5 gm/tonne. The results are interpreted to indicate a strong gold-bearing system associated with widespread silicification and calc-silicate alteration. Furthermore, increased pyrrhotite content, qualitatively based on visual estimates at this time, is associated with increased gold content. In addition, narrow intercepts of relatively high-grade gold (greater than 1 gm/tonne) may be indicative of high grade veins similar to those reported from the underground workings of the LH Mine. Therefore, there may be two gold-bearing targets requiring further evaluation: (1) gold associated with pyrrhotite and skarn-style alteration, and (2) gold-bearing quartz veins. The successful 2014 program utilized the existing road system to minimize reliance on helicopter-use and reduce the cost of the program. Subsequent drilling to test the stronger, more prominent magnetic anomaly associated with the Ridge Zone, will necessitate helicopter-supported drilling above the existing road network. Based on drilling and analytical results to date, the Company believes the results continue to confirm a potentially significant gold-bearing skarn target associated with the Ridge Zone.
On July 6, 2015, the Company announced that it had completed Phase 1 of its helicopter-supported drill program on the LH gold exploration property (the “LH Property”). As part of its 2015 exploration program, the Company completed 11 drill holes at one setup location for a total of approximately 675 metres of BTW core. The program was initiated to target high grade gold mineralization previously identified in the LH underground workings. A Phase II program (planned for the Fall of 2015) will undertake additional testing of high grade gold mineralization previously identified and associated with the underground workings of the LH Mine and/or along the Ridge Zone. Core from drill hole LH-15-30 was split in its entirety, with sampling in subsequent holes limited to mineralized intervals having approximately 2% pyrrhotite over greater than 1 metre. Sampling of the remainder of the holes has been postponed to a later date. Drill core has been split at approximately 1 metre intervals. Samples will be submitted to AGAT Laboratories in Burnaby, BC for analysis. Assay results will be reported by the Company when received and reviewed. By news release dated May 29, 2015, the Company announced its intention to proceed with a non-brokered “flow through” private placement. As Magnum has now completed Phase 1 of its exploration program from funds previously raised, the Company has elected to defer raising any flow through funds until such funding is needed for exploration expenditures that would qualify as such in accordance with the requirements of the Income Tax Act of Canada.
On June 19, 2014, the Company provided an update on its “LH” gold exploration property (the “LH Property”). Specifically, the Company had announced that it had received an approved Mines Act Permit for its proposed 2015 field program. For 2015, the Company had proposed a two phase drill program in the upper Fingland Creek basin. The Phase I drill program will target high grade gold mineralization previously identified in the LH underground workings. Phase II will undertake additional testing of high grade gold mineralization previously identified and associated with the underground workings of the LH Mine and/or along the Ridge Zone. The current drill program will consist of approximately 800 metres of helicopter-supported diamond drilling to make an initial test of an interpreted steeply dipping mineralized zone. Oriented approximately east-west, the high grade, gold-bearing mineralized zone was interpreted based on work, including underground chip sampling and diamond drilling, completed in 1985 on behalf of Noranda Exploration Co. Ltd. The first hole to be drilled will be an inclined hole drilled north from surface, from a pad located above and south of the LH workings. Additional holes are proposed from a second pad north of the underground workings, drilled to the south as either a vertical and/or horizontal fan to further develop and test the mineralized zone.